AutoIndustriya.com / Volkswagen | October 12, 2016 07:46
Tax breaks for diesel engines may be cancelled
Germany's federal council, also known as, Bundesrat recently passed a proposal to stop the sales of new combustion engine cars by 2030. Starting then, only zero-emission vehicles such as electric cars or hydrogen fuel cell-powered cars will be sold in the European market.
“If the Paris agreement to reduce climate-warming emissions is to be taken seriously, no new combustion engine cars should be allowed on roads after 2030,” said Oliver Krischer, Greens party lawmaker.
Krischer's comment alludes to Paris' latest action to curb pollution in the city. Implemented three months ago, Paris officials will be banning cars made before 1997 in the capital. Cars older than 19 years will not be allowed to drive in Paris from 8 AM to 8 PM during weekdays. Even stricter rules apply to scooters and motorcycles with a ban on models made before the year 2000. Like the cars, pre-2000 motorcycles will not be allowed to travel within the city from 8 AM to 8 PM. The restriction is lifted during weekends. Classic cars however are exempt from this ruling as long as it was built or registered before 1977.
Apart from this, the federal council also wants the European Commission to reconsider the country's taxation policies including its effect on the stimulation of emission-free mobility. This could possibly lead to the increase of tax incentives for zero-emission cars or the cancel of tax breaks for diesel cars. This shift to only zero-emission cars could affect thousands of German auto industry jobs with only tenth of the staff needed to assemble an electric car in comparison to a car with an internal combustion engine.
The wake of 'dieselgate' saw the registration of diesel cars in European car market getting lower with a dramatically decrease last August.